Bloody Tuesday: Many Crypto investors liquidated, as trader loses $7 million
A growing number of investors in the cryptoversum have seen their trading accounts suffer significant losses amid Bitcoin's sudden decline.
At the time of writing, the main reasons behind the violent dump were Donald Trump's negative bias towards Bitcoin, as well as growing concerns that hackers are using the digital asset to launder money.
For the day, about 149,015 crypto traders on the crypto derivatives market had their accounts worth about $ 1 billion temporarily deleted. The largest single liquidation order was on Bybit-ETH, valued at $ 7 million.
At press time, Bitcoin was trading at $ 32,784.55, down about 10% for the day.
Donald Trump, the former leader of the world's largest economy, recently announced that he doesn't love the flagship crypto asset as it is a currency that competes with the greenback, which wants to be the world's legal tender . He also compared Bitcoin to a scam and wants the crypto market to be heavily regulated.
The former US president made his bias public in his recent interview with Fox Business on Monday. Trump added that he did not invest in bitcoin and that he has no love for the digital asset. He also noted that the price of the crypto asset was only $ 6,000 when he was president, much lower than it is now.
In addition, recent statistics show that institutional investor outflows for Bitcoin investment products continue to increase. Institutional clients are steadily reducing their Bitcoin exposure, with Bitcoin investment products seeing a record $ 246 million outflow in 3 weeks, according to CoinShare's latest weekly report.
Data compiled by Glassnode, a leading crypto analytics firm, posit that the total dollar-denominated transfer volume handled by the flagship crypto network has declined a whopping 65% in the past two weeks.
The change-adjusted transfer volume decreased from over 43 billion US dollars / day to 15 billion US dollars / day.
Bitcoin isn't the only leading crypto asset to see a decline in on-chain activity. Ether's dollar-denominated transfer volume has decreased by over 60% in the past two weeks. Although the comparable pullback in 2018 was -95. was far more extreme%, Market Commentators say it remains to be seen whether this slump in demand won't last long or whether it's a sign of the future.
In addition, the crypto market continues its bearish trend, with rumors spreading that the world's largest economy is reducing its economic incentives and China and Iran's ongoing attacks on Bitcoin miners.
On the altcoins side, investors arbitrarily and significantly reduced their holdings of these assets as many altcoins such as XRP, Cardano, Solana, BNB, Bitcoin Cash, and Litecoin suffered huge losses.
Although the long-term fundamentals of some crypto assets remain intact, the recent negative aura surrounding hackers and cyber thieves is also weighing on investors' minds after the US Department of Justice recently announced it had around 63.7 bitcoin in the Recovered $ 2.3 million worth of money from Colonial Pipeline to a criminal team during a ransomware attack.
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